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I believe with the proper service book the 500 is the motor for you. I like the Merc 4 cylinder motors as they have a simple magneto, smaller pistons which make manual starting easy & are so smooth firing every 90 degrees. No battery required & can charge a battery as well. Make sure the gearcase is sealed & no rust. They are fully bearinged for less friction but require clean oil to run on. Everything is easy once you know how & some bolts require some heat to get them out the first time. Be sure to add heat before stripping out the heads of the bolts & be patient. Mercury had no idea these motors would still be in use 70 years later so be easy with them & use good thread anti seeze stuff so they will come out again. You will be awarded!
Good on gas, smooth running & dependable motor when tuned well. The carbs are so easy, just set the floats & jets & align with the other carb. Oh fully bearinged rods, wrist pins, cranks & gearsets. Great design!! And usually plenty of extra HP!